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HomeMy WebLinkAboutResolution 09-93 RESOLUTION NO. 09-93 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, REQUESTING THE SAN LUIS OBISPO COUNTY BOARD OF SUPERVISORS TO PROVIDE ASSURANCES TO COUNTY TAXPAYERS AGAINST FINANCIAL LIABILITY WITH RESPECT TO CONTRACTS FOR UNALLOCATED STATE WATER WHEREAS, the San Luis Obispo County Board of Supervisors has entered into a contract with the State of California to purchase water entitlements from the State Water Project; and WHEREAS, the City of Atascadero has chosen not to participate as a contracting agency and has requested the Board of Supervisors not expose City taxpayers to financial risk by taking unallocated reserves of State Water Project water; and WHEREAS, the State requires the County to provide security in the event of default by a contracting agency in the form of a District tax to make up for the default; and WHEREAS, the Board of Supervisors is proposing to enter into contracts with private parties who could be at greater risk of defaulting than local taxing entities; and WHEREAS, the San Luis Obispo County Board of Supervisors has chosen to pursue taking unallocated reserves of State Water, which more than doubles the County's obligation to the State of California, thereby doubling the risk ultimately to District taxpayers. NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Atascadero that: SECTION 1. If the Board of Supervisors chooses to enter into contracts with private interests, steps be taken to protect the taxpayers of the District from the financial liability which could occur should the private interests default. SECTION 2 . All costs for C.E.Q.A. review, water treatment, and all other costs for reservation of the unallocated water to be paid for by those who will potentially benefit- not the taxpayer. SECTION 3 . Since "up front"costs represent a fraction of the liability assumed by the District taxpayers, capital costs for the Coastal Branch of the State Water Project, ongoing operating cots, and other costs attributable to any private contractors should be guaranteed by bond. Resolution No. 09-93 Page Two On motion by Councilperson Borgeson and seconded by Councilperson Luna, the foregoing Resolution is hereby adopted in its entirety on the following roll call vote: AYES: Councilmembers Bewley, Borgeson, Kudlac, Luna and Mayor Nimmo NOES: None ABSENT: None ADOPTED: January 26, 1993 ATTEST: CITY OF ATASCADERO By: LEE RABOIN, Ci y Clerk ROBERT P. NIMMO, Mayor APPROVED AS TO FORM: ARTHER R. MO AND , City Attorney